The paper 'Business Academic Skills' is a wonderful example of a Business Case Study. Australia is an explicit example of an economy that has been resilient even amidst the recent global financial crisis. This was attributed to priorities by the Australian government to maintain a low debt, increasing competitiveness essentially within the Asian market and the development of effective fiscal policy incentives. Although Australia was able to escape the implications of the financial crisis, analysts argue that the economy is increasingly becoming dependent on the emergent Asian markets. The Asian market is progressively becoming a service and consumer market as opposed to the manufacturing base.
Consequently, various debates have been raised concerning the dependence of Australia’ s economic growth on Asia’ s continuing demand for resources. This paper, therefore, seeks to evaluate the issue of Australia’ s economic growth being dependent on Asia’ s continuing demand for resources. According to Pannett and Curran (2012, p5), Australia’ s growth is indeed dependent on the demand for resources from Asia. In an article in the Wall Street Journal, Pannett and Curran (2012, p5), reveal that Australia’ s Treasurer Wayne Swan unveiled a 12-year plan in which rich resourced Australia, would benefit from the fast-growing demand of resources that exists in Asia.
The basic objective of the plan was to get closer to Asia through a policy blueprint. The policy is expected to diversify exports to the Asian region, not just by exporting raw material required in factories but rather the diversification would also involve placing more emphasis on meeting the demands of the fast-growing Asian middle class in terms of tourism, food and also financial services. Pannett and Curran (2012, p5), highlight that although the proposal of getting closing closer to Asia would benefit the Australian economy, opponents argue that the growing dependence of Australia on the demand from Asia essentially China may expose Australia to the slowdown in China.
Based on the report disclosed by Pannett and Curran (2012, p5) it can, therefore, be argued that indeed Australia’ s growth, is highly dependent on the demand of resources from Asia. This is attributed to the continued efforts by the government to get closer to Asia and meet the demands of the fast-growing society. Gyngell (2005, p100) also argues that Australia’ s growth is dependent on the demand for resources from Asia.
Gyngell (2005, p100) highlights that Australia no longer perceives Asia as an economic threat, but rather as an economic opportunity. According to Gyngell (2005, p100), the economic threat or perspective that hard-working Asians were bound to derail Australia economy has been eliminated in contemporary Australia. Foremost Japan was a significant market from the 1950s, and then came to South Korea and now China and Japan. The increasing economic growth of the Asian region is therefore perceived as a complementary factor to the Australian mineral and agricultural resources.
Consequently, due to the standpoint that Asia is a prolific market for Australian resources, then the dependence on demand from Asia is bound to continue in order for Australia to witness continued economic growth. Australia’ s resilience during the global financial crisis is also an aspect that can be linked to the dependence on the demand for resources from Asia. According to a study conducted by Edwards (2010), Australia escaped the crisis with slight injuries due to its capability to meet the demand in the Asian market essentially China.
According to the analysis of Edwards (2010, p362), a country like China is already the second-largest economy in the globe. It will not be long until the Chinese economy accounts for a higher share in the worlds output. Thus it can be argued that Australia should depend on the demand for a large economy like China in order to facilitate its growth. Furthermore, a study by Dominguez, et al (2012, p394) also attributed the resilience of Australia during the recent crisis to her ability to meet the resource demand of the Asian region.
Based on the findings of Edwards (2010, p362) and Dominguez, et al (2012, p394) it can, therefore, be argued that by meeting the Chinese resource demands, then Australia’ s growth is evidently dependent on Asia.
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